Friday, May 04, 2012

How can fewer Americans working result in a lower unemployment report?

Once again, the Obama Administration cooked the books for the April unemployment report. The official number of unemployed was lowered to 8.1%. CNBC looks behind the headline and finds:

Though the headline number indicated job creation, the total employment level for the month actually fell 169,000. The disparity likely emanates from a drop in the labor force participation rate — or the level of Americans actively looking for jobs or otherwise employed — from 63.8 percent to 63.6 percent, its lowest level since December 1981.

The amount of discouraged workers swelled from 865,000 to 968,000, an increase of 12 percent. Those working part-time for economic reasons surged 181,000 to more than 7.8 million.

Investor's Business Daily alerts us that in April 225,000 Americans applied for permanent disability benefits removing themselves from the job market. A record total of 5.4 million have followed a similar path since Obama took office. Under Obama twice as many Americans have been put on disability than have found jobs!

Bad jobs report matches GDP and Housing numbers, lower income

Further hints that we are close to a second recession came a week earlier with the news that overall economic growth was at a sub par 2.2%. This is basically half the economic growth predicted by the Obama Administration and a statistic which bears directly on budget forecasts for unemployment payments and the deficit.

Add to that the March report that median income (Middle Class) since Obama took office has dropped $4,300 and home ownership hit a record low for the decade.

Obama: mark his words!

Less than four years ago Obama promised things would be different:

In February 2009 Obama spoke about the need to turn around the economy before the next election. He said "If I don't have this done in three years there's going to be a one term proposition." [video] Time's up pal. Time for you to GO!